Listen up, students—your financial aid might be in jeopardy. Fox News reported on Wednesday that several states are making big budget cuts that are affecting their public colleges and universities. Financial aid programs are taking some of the biggest hits, including some of the scholarships and grants that provide a vital cash flow for the students who need it the most.

Over a dozen states are eliminating grants, reducing the size of awards, and tightening eligibility requirements due to budget constraints. Thanks to the recession, more and more students are seeking aid because of the sharp spike in tuition costs. While most colleges are witnessing an increase in applications from students who want to ride out the economic downturn and increase their earning potential with a college degree, the reality is that many students need help footing the tuition bill…and they’re not getting much assistance from the state government.

Lots of students receive need-based grants from the schools and the federal government, which is basically money that you aren’t obligate to pay back. Many need-based grants are at risk of being cut, which puts thousands of students in a bind. Without that extra cash, experts predict that some students may be forced to drop out, take on too much debt, or take on longer hours at work.

According to the US Department of Education, about 620,000 more students applied for federal aid compared with last year, which is a jump of more than 25 percent. The demand for aid is booming, and it seems like the government isn’t able to keep up.

The news about the financial aid cuts is clearly not coming at a convenient time. Lawmakers are currently struggling to balance the elusive budgets that are crippling the tax revenues. For instance, Illinois is scrambling to find $11 billion in budget savings, which is bad news for the 145,000 low income students who receive the state’s need-based Monetary Award Program. Since money is quickly running out, these students can expect to receive no help from the government by the time spring semester rolls around. Ohio and Wisconsin have quickly followed suit and eliminated similar need-based grants to their local low-income students.

Education Sector, a think-tank based in Washington, warned in a recent study that student debt was at an all-time high. With more financial aid programs being cut, students will be forced to take out larger loans. What does this mean for higher education? Will fewer students choose to pursue a college degree? Studies fear that higher education would be limited to only those who could afford to pay the annual $40,000+ tuition rates, and also would result in the lower-income students defaulting on their loans.

“We’re getting a lot of questions about why students are not getting financial aid they got last year,” Connie Hutchison, the executive secretary of the Wisconsin Higher Educational Aids Board, said. “It’s so hard to explain to them.”